Lok Sabha passes Bill to amend Insolvency & Bankruptcy Code

The Lok Sabha has passed the Insolvency and Bankruptcy Code (Amendment) Bill -2017.The bill prohibits certain persons from submitting a resolution plan in case of defaults.

These include wilful defaulters, promoters or management of the company if it has an outstanding non-performing debt for over a year.

The Bill also has provisions to bar the sale of property of a defaulter to such persons during liquidation. Earlier, Finance Minister Arun Jaitley moved the bill for the consideration and passing.